Investor Presentaiton
INVESTOR PRESENTATION / OCTOBER 2023
FINANCIAL FORECAST (VERDE'S STANDALONE P&L)
Basis for the Financial Forecast for the First Two Years:
Financial Forecast ($M)
("Yr" pegged to the time of transaction closing)*
Yr 1
H1
H2
Yr 2
Revenue
11.5
1.1
10.4
60.0 - 80.0
Subject to raising
expansion capital of
at least $15M by the
beginning of Yr 1
H2 (i.e., at the
closing of the
Proposed
Transaction)
•
.
Analysis and Highlights
Analysis of the sales pipeline with estimated volumes and timelines.
Current pipeline of prospective customer sales of over $250 million (~$150M after TLGY
adjustment) with potential customers, including Fortune 500 corporations,
multinational plastic players and packaging companies, at various stages of product
development.
Since March 2023, initial purchase orders and written commitments from >10 large
customers, including a leading sports league.
Commercial and technical due diligence: 1) on-site product testing, validation of near-
term commercialization potential, verification of product performance, pricing, and
customer interest; 2) potential customer interviews to assess their interests and
projects status.
Partnership with Vinmar America, a leading global distributor of plastics, already
generated few dozen leads / initial orders with potential customers.
Price analysis on commodity plastics and alternatives to verify PEL pricing.
Gross Profit
5.1
0.5
4.6
28.8 - 38.4
•
Gross Margin (%)
44.4%
44.4%
44.4%
48.0%
EBITDA
-3.3
-2.6
-0.7
9.0 -15.8
•
•
EBITDA Margin (%)
NM
NM
NM
15% - 20%
•
•
A cost analysis of key material costs including Green PE and additives.
Analysis of labor cost assumptions (~10% of total product cost).
Profit driven by strong margins and low costs of operation and cap ex.
Profitability expected to increase as business scales.
Note: The financial forecast is dependent on the closing date of the Proposed transaction ("T") due to capital requirement. Therefore, in above Year 1 represents the 12 month period from T minus six months (T-6) to T plus six months (T+6), where T is the closing date of the Proposed Transaction. Yr 2 from
T plus six months (T+6) to T plus eighteen months (T+18) For example, if the Proposed Transaction were to close on December 31, 2023 then Year 1 would be between July 1, 2023 to June 30, 2024.
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